What do you need to know
- Warren wants Wyden to hold a hearing and investigate the wealthy’s use of loopholes to avoid paying income taxes.
- Wieden should also examine the record volumes of bank lending to the rich.
- Most loans for tax evasion and other tax evasion methods are not disclosed to the IRS.
Senator Elizabeth Warren, Massachusetts, is urging Senate Finance Committee chairman Ron Wyden, Oregon, to hold hearings and investigate how wealthy people use tax loopholes to avoid income tax, as ProPublica and The Wall recently reported. Street Journal.
Warren and Senator Sheldon Whitehouse, M.D., are both members of the Senate Finance Committee, Wyden told Wyden on Wednesday. in a letter that a recent ProPublica report “debunks the cornerstone myth of the American tax system: everyone pays their fair share, and the richest Americans pay the most.”
The tax reports reviewed by ProPublica, the senators wrote, “show that the wealthiest can – perfectly legally – pay income taxes, which are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow every year.”
“ProPublica has received a ton of tax data for the nation’s billionaires,” wrote Warren and Whitehouse. “He estimated that the tax bills of some of the richest people in the country were equivalent to just 3.5% of their growing wealth, well below the typical rates paid by middle-class wage earners. Some paid even less, ”they wrote with reference to Warren Buffett and Jeff Bezos.
Senators also advised Wyden to investigate record volumes of bank lending to the rich, allowing them to “take out cheap loans backed by their investment portfolios so they can finance their lifestyle while minimizing their tax bills” as reports The Wall Street Journal…
“Banks profit from these arrangements by increasing their management fees when they use this practice to help the rich avoid paying taxes,” Senators told Wyden.
Wealth management clients of Morgan Stanley “have $ 68.1 billion in outstanding securities and other non-mortgage loans, more than double the amount they had five years ago, and Bank of America there are loans on the basis of securities in the amount of 62.4 billion dollars, “- wrote the senators.